When trying to upgrade a Parallels Desktop 3.0 VM in Parallels Desktop 4.0, the installation fails because the "VM Additions PS/2 Port Mouse" driver install fails with the error "Not enough storage is available to process this command.". There is 62.4 GB available on the virtual disk and over 200 GB available on the host disk, so I'm not sure what is causing this problem or how to go about fixing it. I tried increasing the RAM available to the virtual machine from 512 MB to 1024 MB in the hopes that it might just be a lack of RAM, but the problem still occurs.
Edit: If you are having this problem, a solution has been found:
http://kb.parallels.com/en/5735
Edit: If you are having this problem, a solution has been found:
http://kb.parallels.com/en/5735
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